Bitcoin appears to be bouncing off its channel support and aiming higher again

Bitcoin appears to be bouncing off its channel support and aiming higher again

Bitcoin is bouncing off the bottom of its ascending channel on the 1-hour chart and might be due for a move back up to upside targets. The Fibonacci extension tool shows where bulls might book profits if the uptrend resumes.

The 38.2% extension lines up with the mid-channel area of interest around the $6,600 level while the 61.8% extension is closer to the swing high and channel resistance. Stronger bullish pressure could take bitcoin past the channel top and onto the 78.6% extension at $6,900 or the full extension at $7,066.2.

The 100 SMA is still above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. However, the gap between the moving averages has narrowed to signal weakening bullish momentum. These moving averages might also hold as dynamic resistance levels.

Stochastic is still pointing up to show that there’s bullish pressure left, possibly enough to take bitcoin up to the nearby resistance levels. This oscillator is nearing overbought territory to signal bullish exhaustion and a possible return in selling pressure.

RSI is also pointing higher and has more room to climb before hitting overbought levels, so bullish momentum could stay in play for a bit longer before sellers take over. A break below the swing low around $6,300 could signal that a downtrend is in order.

Google has reportedly scrapped its bitcoin ban, possibly reviving interest in the general public once more. Recall that the search engine giant previously introduced a ban on bitcoin and ICO ads in order to protect consumers. This follows a similar move by Facebook and will take effect next month.

However, only regulated crypto exchanges in the US and Japan will be allowed to buy ads on the Google platform.


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